GM Quarterly Profit Soars Despite Loss in Europe

General Motors Co. net earnings surged to $892 million (€663 million) in the final three months of 2012 from $472 million (€351 million) a year earlier as big gains in China overcame sharp losses in Europe.

The company's revenue grew 3% year over year to $39.2 billion (€29.1 billion) in the latest quarter. Worldwide vehicle deliveries rose 4% to 2.33 million units.

In the October-December period, GM's operating loss in Europe deepened to $699 million (€519 million) from $562 million (€418 million) a year earlier. North American income slid 7% to $1.4 billion (€1 billion).

The company's international unit, which includes Asia Pacific and Africa, hiked fourth-quarter operating earnings 27% year on year to $473 million (€351 million). South American operations swung to a $99 million profit (€74 million) from a $225 million (€167 million) loss.

For the full year, GM's net income fell to $4.9 billion (€3.6 billion) from $7.6 billion (€5.6 billion) in 2011. Last year marked the company's third straight year of profitability since its bankruptcy in 2009.

Revenue in 2012 edged up 1% year over year to $152.3 billion (€113 billion). Deliveries climbed 3% to 9.29 million vehicles.

Last year the company's North American unit boosted revenue 5% from 2011 to $94.6 billion (€70.2 billion). Sales volume increased 3% to 3.02 million vehicles. Operating earnings in the region contracted 3% to $7 billion (€5.2 billion) as higher vehicle launch costs offset an improved in product mix.

GM Europe's revenue dropped 18% year on year to $26.8 billion (€19.9 billion) in 2012. Deliveries shrank 8% to 1.61 million vehicles.

The European unit's operating loss last year widened to $1.8 billion (€1.3 billion) from a $747 million (€555 million) loss in 2011. Its 2012 deficit included a $6.4 billion (€4.8 billion) writedown of European assets including a $220 million (€163 million) writeoff of the 7% stake of PSA Peugeot Citroen that GM bought for $400 million (€297 million) last March.

The company's European restructuring included a 2,500-job reduction in its workforce last year. GM confirms that it expects its results in the region to be "slightly better" this year.

Revenue from GM's international unit in 2012 climbed 12% year on year to $27.7 billion (€20.6 billion), and operating earnings jumped 15% to $2.2 billion (€1.6 billion). Sales advanced 10% to 3.62 million vehicles, buoyed by an 11% gain to 2.84 million units in China.

Last year the company's South American revenue was flat at $17 billion (€12.6 billion) as volume slipped 2% from 2011 to 1.05 million vehicles. The unit swung to a $271 million (€201 million) operating profit from a $122 million (€90.7 million) loss in 2011.

For 2013, GM confirms its earlier forecast of a modest profit increase, as strong sales in China and the U.S. partially offset by the cost of launching 25 new or revamped models worldwide.